PROBLEMS
Counterfeiting is a well-organized system, which is difficult to mitigate if not stopped in an early stage. It is therefore critical for companies to take proactive steps to maintain revenue, the credibility and the goodwill of their brand.
Consumers are less likely to buy from the brand’s own website or its actual store if its products have been susceptible to counterfeiting elsewhere. It is crucial to engage customers in product verification, as the counterfeit organizations are applying more sophisticated methods of production and sales.
Counterfeit electrical goods do not pass vigorous safety checks, fake adapters poses a risk of lethal electrocution and non genuine cosmetics contain cyanide, arsenic, mercury or lead. Counterfeit alcohol and foods are not subjected to health procedures and the damage can potentially be fatal to consumers.
THREATS
ABOUT THE CONSUMER APP
»Allows consumers to verify products and report suspicious ones
»Store extended merchandising data about the products that did not fit on the packaging
»Tool for mobile marketing campaigns
»System is capable of generating millions of unique QR codes in batches, linked to specific products
»Cloud server/database with stored product and code data
»Client access to the web interface to add and edit data
»Data collection and sales statistics or analytics
QR CODE ON THE PRODUCT
PRODUCT DETAILS
Product details may contain different types of rich media: text, photo, audio or video
OTHER FEATURES
Promotions, loyalty system and new product notifications are all part of the app
FACTS
Increase in counterfeiting in the past two decades
Over three-quarters of consumers are less likely to buy products from a brand if their reputation was associated with counterfeit goods
Counterfeiting is a trillion dollar problem worldwide
of consumers that had been ripped off after unintentionally purchasing counterfeit goods have lost trust in buying from that brand again